Intel Delivers Better Than Expected Fourth Quarter Financial Report

Semiconductor chip manufacturer Intel reported its Q4 financial report this week and saw better than expected results as well as upbeat guidance.

The company saw shares drop as much as 3% in volatile extended trading before recovering.

Here’s how Intel did for the period ended December 26th.

The company reported earnings per share of $1.09, adjusted, compared to $0.91 expected per Refintiiv.

Revenue at $19.5 billion, adjusted, was ahead of the $18.31 billion that was expected.

The company also said that it expected $18.3 billion in adjusted sales in the first quarter of 2022, beating consensus analyst expectations of $17.62 billion.

Intel’s largest business, its Client Computing Group, was down 7% year-over-year to $10.1 billion, though it still beat analysts’ average estimate of $9.6 billion, according to FactSet.

Intel CEO Pat Gelsinger said the annual drop in the group, which includes Intel’s PC chip business, was a function of customers and PC makers shifting sales from quarter to quarter.
PC sales have been up since the start of the pandemic in 2020, including during last year’s December quarter.

“I wouldn’t read anything into the quarter-on-quarter,” Gelsinger said. According to the CEO, supply constraints were also a factor.

Gelsinger added that he expects PC sales to remain strong.

Intel’s Data Center Group unit also topped expectations, with revenue rising 20% to $7.3 billion, compared to the average estimate of $6.7 billion.

“The Q4 was really marked by the on-premise, enterprise, and government sector strength,” Gelsinger said.

Gelsinger took over as Intel just under a year ago.

Intel announced last week it plans to build a chip-making complex in Ohio, with the ultimate size of the complex linked to legislation that would result in $52 billion in subsidy funding for semiconductor companies. Intel could spend as much as $100 billion if subsidies are approved.

Intel also raised its quarterly cash dividend 5% to $0.365 per share.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.